I have been in the cryptocurrency space for exactly 10 years, and I want to tell everyone that if you want to change your fate, you must try the cryptocurrency world. If you can't make money in this circle, ordinary people may really have few opportunities in their lifetime.
Traits of excellent traders
First of all, excellent traders must be patient individuals who can endure prosperity!
Market cycle theory
"Five Poor, Six Exhausted" is true every year. According to cycle theory, there are actually not many good times for trading cryptocurrencies within a year. "Five Poor, Six Exhausted, Seven May Not Turn Around"; every year in May, June, July, and August, I usually hold a cash position and observe.
So, when is a good time to enter the market?
1. Enter the market at the end of September and clear positions by the end of November.
2. Enter the market before the Spring Festival and clear positions in April.
3. Execute these two iron rules, though the short-term operations of individual small-cap stocks are not included.
4. Next, learn how to find hundred-fold coins and achieve wealth in a bull market.
Stick to these ten principles when trading cryptocurrencies, and you will definitely reap abundant rewards in the end.
Market trading principles:
1. Do not easily let go of low-priced chips: Stay firm in your beliefs and prevent market manipulators from colluding to drive prices down.
2. Chasing highs and cutting losses, entering and exiting with the whole position is always a major taboo: In a favorable overall trend, building positions in batches during declines is lower risk, lower cost, and potentially higher profit than chasing highs.
3. Reasonably allocate profits: Maximize the release of funds, rather than just increasing positions with more capital.
4. Rapidly rising out of capital, rapidly falling to secure currency: Always maintain a good mindset, do not speculate, do not be impatient, do not be greedy, do not be afraid, and do not engage in unprepared actions.
5. Ambush or privately purchase low-priced coins based on experience and judgment: The secondary market game requires skills and information; do not lose sight of the fundamentals, or it will easily lead to chaos.
6. Position building and unloading should be layered and segmented: Gradually widen the price segments to effectively control the risk-to-profit ratio.
7. Familiarize yourself with the interconnected effects: Each cryptocurrency does not exist in isolation; many tools can help view cryptocurrency information and consultation, and understanding these interconnected effects is very important.
8. Asset allocation must be reasonable: The allocation between hot coins and valuable coins should be balanced; it should not be too conservative to miss opportunities, nor too aggressive to face high risks. Value coins should prioritize stability, while hot coins are highly volatile, potentially skyrocketing or plummeting.
9. Having coins in the market, money in the account, and cash in the pocket: This is the safest and most reassuring standard configuration; do not go all in, going all in will lead to failure. Understanding risk control and reasonable capital allocation is key to your mindset and success or failure; investing with spare money is foundational.
10. Master basic operations: Learn to draw inferences from one instance to another, and grasp the fundamental ideas of trading. Observation is the precondition; remember each high and low point as reference data, learn to take notes, summarize materials, cultivate a reading habit, and develop the ability to filter and sift through information.
Summary
Through these principles, combined with the cyclical nature of the market and reasonable capital management, I believe you will gain something in the cryptocurrency world. Remember, opportunities and risks coexist in the cryptocurrency space; only by mastering the correct methods and mindset can you stand undefeated in this turbulent market. I hope these experiences can help you.
The above are summaries of my 10 years of practical experience and skills in trading cryptocurrencies. They may not apply to everyone and require each person to use their own practice to summarize. As a trader, the scariest thing is not technical issues, but a lack of understanding, falling into these trading traps without realizing it! There is no invincible trading system, only people who use trading systems invincibly! This is the truth; the trading system ultimately returns to the individual!